Presented here is basic financial information from the 2009 annual reports of In
ID: 2367270 • Letter: P
Question
Presented here is basic financial information from the 2009 annual reports of Intel and Advanced Micro Devices (AMD), The two primary manufacturers of silicon chips for personal computers. In millions Intel AMD Sales $35,127 $5,403 allowance for doubtful accounts, Jan 1 17 8 allowance for doubtful accounts, Dec. 31 19 7 allowance for doubtful accounts,(gross),Jan.1- $1,729 328 allowance for doubtful accounts,(gross)Dec. 31- $2,292 752 Instructions: calculate the receivables turnover ratio and average collection period for both compannies. comment on the difference in their collection experiences.Explanation / Answer
Advanced Micro Devices, Inc. (NYSE: AMD) or AMD is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for commercial and consumer markets. Its main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications. AMD is the second-largest global supplier of microprocessors based on the x86 architecture (behind Intel) and also one of the largest suppliers of graphics processing units. It also owns 8.6% of Spansion, a supplier of non-volatile flash memory.[6] AMD is the only significant rival to Intel in the central processor (CPU) market for (x86 based) personal computers. Since acquiring ATI in 2006, AMD and its competitor Nvidia have dominated the discrete graphics processor unit (GPU) market.[7]